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tv   Cavuto on Business  FOX News  December 14, 2009 4:30am-5:00am EST

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hey, the debate is really hot un business." neil: reports that p.r. firms run by one mark penn, hillary clinton's top pollster, got $6 million in stimulus cash to stimulate, are you sitting down, all of three jobs, which i guess beats thousands of dead people getting stimulus checks, or dead patients getting prescriptions written by dead doctors all on your dime. is this reason enough to slow down on stimulus 2?
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i'm neil cavuto. happy weekend. let's get reaction from ben stein, charles payne, and our special guest, love this guy, vincent carotoha, known as johnny sack on the sopranos. if anyone says anything out of turn, he gives them the look. that's the look. what is going on here? >> that's why i'm in the basement. would any of us be surprised if say the $400,000 went to the state university of buffalo to study the effect of booze drinking and marijuana smoking on young adults actually went to buy the booze and marijuana? i don't think so. neil: i think that's a little jaded. ben stein. >> well, politics is a bad corruption. politics is about using the power and the wealth of the public purse to bribe your friends and to punish your enemies, so it's not surprising this happens. it is extremely unfortunate but
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not surprising, but look, the recovery by now looks to be, and we hope we're not wong about, this self-sustaining. i don't think we need another round of billions of dollars to the president's allies. the economy is on its way up. please, government, get your foot off the oxygen tube and let the economy run. neil: this was the reaction, we tried to reach mark penn to get a comment. the best we could do is a written response "the story appearing in the hill newspaper fundamentally inaccurate, we were award add competitive bid to support the efforts to educate and add advertise the switch to digital television" but only $4.36 million of the $6 million was spent, so that definition is not $2 million apiece, but a little over a million. what do you think of that? >> there is always going to be a certain a waste, fraud and
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abuse, but what people are worried about is all the money the white house wants to control. they want to take tarp, whatever is paid back, they want that. they want stimulus 2. it feels like butch cassidy and the sundance kid. they robbed a few banks but they would blush at basieness of going back again and again. shovel ready jobs, the last time we spent $27 billion on them, so this time maybe we will spend real money on t. neil: i'm looking at this story and remembering one of the best campaign ads ever done, featuring you in a hillary clinton spot that also had her husband bill, and i don't know if any of you remember this from the campaign. let's take a look. neil: it turns out that even then vince knew the stimulus money was going to make its way
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to nefarious purposes. how did you know? >> it's funny, because that morning bill clinton walked up to me and said i'm a big fan of the show. i said thank you. he said are you guys coming back, and i said no, are you? neil: that must have gone very well. what do you make of that? we had a joke that this is accepted in washington today. man, oh, man. >> like ben just said, let this thing breathe. i think that obama has not gotten the message yet that he is definitely not part of the solution, so could you please stop being part of the problem. this overcol is sick. the business of america is business, not big business, not ford, not g.m., the little guy onto corner who today cannot go and borrow $50,000 and he has been in business 100 years. we are only lending to ourselves, all the night aids
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and we're very happy because the president gave us this money but never said the codicil is lend it out, so now he's trying to get back and say you messed up, come in the room and close the door. don't you remember, i told you, you're supposed to lend it out, no. just get out of the way. let the market come back by itself. neil: maybe that's happening now, as ben alluded to that we are starting to see an improvement here, whether you credit it with stimulus or not. let's say you do, because i have a sneaking suspicion you do, then cease and desist and let's see how this goes. >> well, my friend ben and i were both in favor of the stimulus, stimulus one, and we're both against the idea of stimulus 2. i think that's the highest level point here. i agree, we don't need it. this isn't the right time to do it. the economy is firming, and to spend more money on a stimulus program would be the wrong thing. by the way, we have a lot of pop
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culture references going here. i want to thank you for showing steve austin at the beginning of the show. neil: love that show! the hidden fox news alert here is that you're against more stimulus. >> correct. well, i just don't think it's the right thing to be doing right now and i think that's the con sengal wisdom in the country outside of the white house. to pick on the 4 million or $6 million i think is completely irrelevant. they gave a perfectly good explanation, this digital conversion training. people were upset because they were losing their television signals. neil: this is just the latest in a steady stream, you know, 10,000 checks going out for dead people, checks going out to prison inmates, tax credits for kids. i'm mad at my two boys that they never got in on that gravy train. prescriptions written by dead doctors to dead people and on
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and on, and we're saying it is just a small piece of the pie. >> look at the sub spending too. take the administration's figures at face value in the jobs they say they created, 170 grand a job in some states, $200 per job in some states, it is 0 not on the up and up. it is a poorly run program. >> and neil, what you're seeing is reputation of what we already have and have already tried. $50 billion more for infrastructure spending, you got your chance in the first stimulus packet. we already have generous tax breaks in place for people to make their homes more energy efficient, unlimited, in fact on putting solar panels on your house or a wind turbine outside. what more do you want? neil: ben stein, you said that we have seen improvements and you hope it continues. we have seen a pickup in our activity, in retail sales. is this eel and is this the result of the stimulus? >> nowhere near the result of stimulus, but the stimulus
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probably helped. what really helped was the bank bailout. we all scoffed at it. a lot of the money was wasted but it stopped the run on the banks. it firmed up the financial system. that has allowed the society to pick up f they could just make the banks lend to the little guy as my friend from the sopranos says, we could get a real recovery, and please, mr. obama, no more of that carbon nonsense. no more calling co2 a life-giving gas, a poison, no more messing around with what makes the economy work. neil: when we come back, the president says he wants to use bailout bucks to provide jobs for unemployed americans. steve forbes isn't buying any of it. he says it is about to buy votes first, a setdown for a setup? the white house inviting bank execs for a little sit-down on monday. before they go, they better listen to johnny's advice. cheer clearp com.
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neil: bank executives go to the white house on monday. do not make the big guy angry. president obama is expected to put the pressure on banks to start lending more money.
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you say get ready for a little so pan know moment. >> why didn't he do this months ago when he lent to the banks? was it to clean up the balance sheet? just lend to each other but don't lend to anybody who asks you for a loan. neil: let's say you're a banking exec in that room, and it's intimidating, what do they do? >> why do they care? why would they care? that wasn't a codicil in the contract that they could borrow the money only if they put out x amount of dollars in small business loans or personal loans, so why should they care? they're going to shake his hand and say merry christmas and say we're not taking any risks when the treasury rate is at zero percent. we're not lending money out for a quarter. neil: he might drop a reminder whether you return money or not, i might be looking to be paid. >> they continue to borrow. he is not -- neil: you would tell him to kiss
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off? >> absolutely. it wasn't part of the contract. neil: charlie? >> listen, he had this meeting a week ago with the utility guys. what is scaring me is this were other people in the room scaring me, not just the environmentalists. the unions and johnny sack, i'm not talking about the ones that you you are involved with, but the unions are there, and i do believe that whatever it is the president will make a serious threat. i don't know perhaps he can say we have a e.p.a.-type of secret weapon. certainly we see what is coming through in congress. i know he has had no choices. this is no doubt that he has messed this whole thing up. you give up $700 billion with no strings attached and then you come around, no way. this is an important ule for the president because they make the most convenient whipping boys and continue to make him look good. as his polls go down the only things that cushion him is the banking industry.
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neil: will you change when you are in the room with the president? ben stein reminded us that the c.b.o. head, elmendorf was asked how he came up with the figures that the healthcare man wouldn't save money and lo and behold a couple of weeks later he said hey, we will save some money. what happens in that building? >> what happens is the president makes an offer they can't refuse, listen, you want to be bank holding companies and you subject to the rules of the fdic and i can put the pay czar into the fdic and he can control your pay, bonuses, pensions, and i would like to see cooperation in lending to small business. now, ier airily have a good word to say about film geithner but he came up with with a good proposal which is that the government will guarantee small business loans for the 12 months. this is a work of genius by tim geithner. this is probably the best pro-recover i measure yet and i hope it gets done. neil: bottom line, ben, you are
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saying that the president can make it cheer he has a point of view. >> absolutely. neil: without ben stein being a mob boss. >> exactly. neil: what do you make of that? >> one s.b.a. loan process is tortuous to the point that small businesses don't want to bother with it. that is a huge problem with government involvement, but you are right about financial regulation, greater financial regulation is the baseball bat that the administration can use against these banks but by the way, loan demand is down. it is the consumer who is getting their balance sheetite and reducing debt. it was the government's debt in the most recent reports this week that went up 20% which was more than this 20% straight increase we have been seeing. incredible. neil: charlie? >> this is a distraction and sideshow. it is populace. it makes people feel good to hear him say you need to lend more. the fact of the matter is the
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banks are going to hend when they think it is in their interest to lend. by the way, that's exactly what we want them to do. the bailout was one thing for good reason to stop a run on the system, as ben said earlier. it has nothing somewhat what soever with them lending right now. we don't want to force them though lend. that's how we got into the problem in the first place. neil: what have you done to the adam i know? the guy who wanted banks to give away all their money. what has happened to you? >> the giveaway should be in the spring. >> i agree. people don't want to be bothered with the s.b.a. and there is such a thing as good debt, and there was a lot of good debt before, people who had no business borrowing money were given more of it. what happened to the other people? by the time you want to expand your business, it is 14, 15 months down the road, it is like i don't want to do it anymore.
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the way things work, go into a bank, here is my tack record, i need $100,000, i want to fix up my building. you can't do it today. neil: what you advocated was putting that money in a paper bag and leaving. >> there is nothing wrong with, that neil! nothing is wrong with that. neil: i understand. if i managed to survive the break, when we come back, let the global warming begathon begin. the hands are out
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neil: the copenhagen throwdown over your money or the country, and the global warming summit looking for a $40 billion handout from rich countries to fight climate change. the rich countries are only pledging $10 billion. the gap, here we go. >> the rich guys are pledging $10 billion out of the gate. $40 billion is low. the number will go much higher, i'm talking maybe $150 billion a year and america will pay the most. what people have to ask in america, i think a lot of it is the guilt trip at the white house. really, listen we killed all the indians and took their land. we bout a lot of slaves over. we have a lot of can chinese people working for pennys a day making $100 sneakers. we owe the world. that's the missage. america has to ask themselves that you feel so guilty that you're ready to spend hundreds of billions, go from the bread basket of the world to importing
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foods, because that's the path we're going down. neil: the thing i worry about, let's say we're going to have to pony up. all i ask is that china, india, you pony up, too. >> the problem isn't money. i wish it were, neil. the problem is social control. this administration, from the very first day, has been about social col social col over the lives of citizens by the federal government. if they want to regulate the poison, then they will regulate every moment of our lives because we all breathe in and expel co2 and that allows them to regulate every detail of our lives. this is no limit to what the government can control now. >> neil, it is not about social control. our country has a long history of ponying up. neil: that's the liberally know and love. go ahead. >> we spend because we're
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leaders in this world and we benefit from being leaders. >> you're comparing a marshall plan to this? you're comparing the marshall plan to this. why is it that more people are outraged by the documents that were eliseed out of east anglia that seem to suggest that a few are manipulating research about climate chain? request are we moving ahead with anything, which whether it is the e.p.a. or copenhagen when that happened? >> i want to stop right now and say i'm in love now than ever. neil: vincent, these are the leaders there in copenhagen. you're there. you're the president. give them the look. they want billions from you. >> unbelievable. neil: that would be a no from the united states, but they're going to get a yes. >> listen, you know, we supply the entire world with wheat,
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which is fine, but you know what? for a bushel of wheat, give us a gallon of gasoline. how is that? neil: guys -- >> barrels! >> we are going to have less acres of form land. we're going to import food. where we're going is so disastrous. neil: you think it is over a gielt complex? >> a complex that makes you apologize in france to the premier. neil: i want to thank you. thank you for letting me live! he is a wonderful gifted actor and a very funny guy. >> thank you. neil: new worries that america's triple a credit rating might be fading but no worries because theyeyeyey.
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neil: no downgrading our guests' triple a picks. >> a a combination of recovery with al coya and the weak dollar helping those kinds of stocks but i think demand, also. neil: adam, what do you think? >> my problem is that there is a lot of momentum behind alcoa. it is a step on the global economic recovery and if that doesn't happen, al coya won't
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happen. neil: so what are you doing? >> scwvment and jj and scwvment, a world class company with an attractive valuation and decent dividend as well. neil: ben, what do you think? >> i own it, i own a fair amount that my parents left to me because i recommended it to them 30 years t is a well managed company, unbelievably well managed. >> so you like the pick? >> i love it. i don't feel that i'm smart enough to pick individual stocks. i like the eem, emerging market index fund. i think the emerging markets are the future for the next 100 years. i love them. neil: he is arguing over the course of time you can't beat it. >> the data is


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